WallStSmart

Electromed Inc (ELMD)vsMerck & Company Inc (MRK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 90131% more annual revenue ($66.57B vs $73.78M). ELMD leads profitability with a 15.3% profit margin vs 4.8%. ELMD appears more attractively valued with a PEG of 0.35. ELMD earns a higher WallStSmart Score of 70/100 (B-).

ELMD

Strong Buy

70

out of 100

Grade: B-

Growth: 8.0Profit: 8.0Value: 6.0Quality: 9.0
Piotroski: 5/9Altman Z: 5.86

MRK

Hold

36

out of 100

Grade: F

Growth: 4.0Profit: 4.5Value: 2.0Quality: 5.0
Piotroski: 3/9Altman Z: 2.27
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ELMDSignificantly Overvalued (-55.2%)

Margin of Safety

-55.2%

Fair Value

$16.28

Current Price

$27.25

$10.97 premium

UndervaluedFair: $16.28Overvalued
MRKSignificantly Overvalued (-73.7%)

Margin of Safety

-73.7%

Fair Value

$82.84

Current Price

$144.85

$62.01 premium

UndervaluedFair: $82.84Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ELMD5 strengths · Avg: 9.4/10
PEG RatioValuation
0.3510/10

Growing faster than its price suggests

Debt/EquityHealth
0.0010/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
5.8610/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
20.6%9/10

Every $100 of equity generates 21 in profit

EPS GrowthGrowth
49.0%8/10

Earnings expanding 49.0% YoY

MRK2 strengths · Avg: 9.0/10
Market CapQuality
$355.10B10/10

Mega-cap, among the largest globally

Free Cash FlowQuality
$4.48B8/10

Generating 4.5B in free cash flow

Areas to Watch

ELMD1 concerns · Avg: 3.0/10
Market CapQuality
$226.72M3/10

Smaller company, higher risk/reward

MRK4 concerns · Avg: 3.3/10
Price/BookValuation
8.5x4/10

Trading at 8.5x book value

Return on EquityProfitability
7.6%3/10

ROE of 7.6% — below average capital efficiency

Profit MarginProfitability
4.8%3/10

4.8% margin — thin

Debt/EquityHealth
1.293/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : ELMD

The strongest argument for ELMD centers on PEG Ratio, Debt/Equity, Altman Z-Score. Profitability is solid with margins at 15.3% and operating margin at 19.7%. Revenue growth of 11.6% demonstrates continued momentum.

Bull Case : MRK

The strongest argument for MRK centers on Market Cap, Free Cash Flow.

Bear Case : ELMD

The primary concerns for ELMD are Market Cap.

Bear Case : MRK

The primary concerns for MRK are Price/Book, Return on Equity, Profit Margin. A P/E of 116.1x leaves little room for execution misses. Thin 4.8% margins leave little buffer for downturns.

Key Dynamics to Monitor

ELMD profiles as a mature stock while MRK is a value play — different risk/reward profiles.

ELMD carries more volatility with a beta of 0.51 — expect wider price swings.

ELMD is growing revenue faster at 11.6% — sustainability is the question.

MRK generates stronger free cash flow (4.5B), providing more financial flexibility.

Bottom Line

ELMD scores higher overall (70/100 vs 36/100), backed by strong 15.3% margins and 11.6% revenue growth. Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Electromed Inc

HEALTHCARE · MEDICAL DEVICES · USA

Electromed, Inc. develops, manufactures, markets, and sells airway clearance therapy and related products that apply high-frequency chest wall oscillation (HFCWO) therapy in lung care for patients of all ages in the United States. and internationally. The company is headquartered in New Prague, Minnesota.

Merck & Company Inc

HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA

Merck & Co. is an American multinational pharmaceutical company headquartered in Kenilworth, New Jersey. It is named after the Merck family, which set up Merck Group in Germany in 1668.

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